A Study On The Default Risk Of Auto Financing Lease Loan

As an organic combination of the financial industry and the automobile industry,the automobile financial leasing industry has the unique advantages of low down payment,low loan threshold and simple loan procedures,and has developed very rapidly.However,due to the relatively lagging development of my country’s auto financial leasing industry and its imperfect risk management,the risk of default in the auto financial leasing business is relatively high,which brings more bad debts to the companies that carry out this business and affects its normal operation.Under this background,the issue of default risk of auto financial leasing business and its action mechanism have received close attention from the academic and practical circles.Based on the data of company A’s auto financial leasing business from 2016 to 2019,this paper analyzes the overall business risk of auto financial leasing and compares and analyzes the difference in default risk between the two typical business models of self-operated and bank-assisted loan,and reveals the risk of auto financial leasing business.Default risk mechanism.The benchmark regression in this paper shows that compared with the self-operated business,the default risk of the bank loan-assisted business is significantly lower.This conclusion still holds after a series of robustness tests such as replacing the regression model and replacing the explained variables.Further,this paper uses the grouping regression method to examine the rich heterogeneity of the default risk of the self-operated business and the bank loan-supported business in the dimensions of the ex-ante business process review channel and the ex-post risk management and control channel.The study found that,first,compared with the self-operated business,the bank loan assistance business has alleviated the adverse selection problem of the auto financial leasing business through the perfect loan approval mechanism and strict customer screening Agent business,offline channels,and second-hand car loan default risk;second,compared with self-operated business,bank loan assistance business strictly limits the content of contract terms and strong repayment constraints and other post-mortem loan risk management and control channels.Significantly reduces the default risk of auto financing leasing business loans with long term and large financing amount.Based on the data of company A’s auto financial leasing business,this paper analyzes the possible reasons for the difference from the perspective of the risk difference between its self-operated business and bank loan business,and improves the understanding and understanding of the default risk of the auto financial leasing business.The empirical research in this paper explores the difference in default risk between self-operated and bank-assisted loan models,which is more convincing and enhances the understanding of the inevitability of cooperation between the auto financing leasing industry and banks.It is of great practical significance to further provide decision-making reference for the development of other companies in the industry under the background of stricter supervision,and to promote the healthy development of the automobile financial leasing industry.